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Harry Moser President Reshoring Initiative

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Presentation on theme: "Harry Moser President Reshoring Initiative"— Presentation transcript:

1 Harry Moser President Reshoring Initiative
Role of Skilled Workforce in Corporate Plant Location Decisions Harry Moser President Reshoring Initiative MSSC Executive Briefing 2016

2 Skills and Talent Survey Result Themes
Skills and talent availability are critical to the site selection decision Skilled crafts and STEM have the greatest shortages Process manufacturing and advanced manufacturing more affected Community / technical college and apprenticeship programs can set regions apart in the short-term Addressing long-term structural gaps starts in the primary education system Source: 2015 Workforce Skills and Talent Survey:

3 Talent Shortage by Project Type
Source: 2015 Workforce Skills and Talent Survey:

4 Skills/Talent Gap Viewed As More Critical In The US Than EU Or Asia
Is there a skills gap that is affecting client’s ability to find and retain skills / talent? U.S: 97% Europe: 62% Asia: 46% Source: 2015 Workforce Skills and Talent Survey:

5 Source: 2015 Annual Survey on Site Selection Trends, http://www

6 Workforce/Talent Drivers
Workforce availability and training Those areas that can develop and sustain evolving skill sets are poised for sustained growth Haves and have-nots will be determined by the ability to demonstrate abundant, quality, and sustainable skilled/technical workers. US has to compete across key industries with technical skills that are less easy to outsource (offshore?) (e.g., 2-year degree for manufacturing PLC/CNC positions) Source: 2015 Annual Survey on Site Selection Trends,

7 Dunwoody’s Machine Tool Technology AAS Degree Program
Minneapolis, MN Number of June 2012 graduates: 22 Number fully employed in the industry when graduating: 21 (95%) (Recent BA/BS grads employed fulltime: 47%) Avg. starting salary: $17.64 per hour (>BA$) Requests to hire graduates: 450 Complaints from companies: 50

8 Most Career Data is Incomplete

9 Source: How Liberal Arts and Sciences Majors Fare in Employment. 2013
Median earnings for graduates with only baccalaureate degrees ( ) Source: How Liberal Arts and Sciences Majors Fare in Employment. 2013

10 Median Annual Salary of Bachelor’s Graduates
by Field of Major and Age, 1993 TOOL & DIE Source: National Survey of College Graduates, NSF/SRS, NTMA, PMA/TMA. (Data will next be released in ) 10

11 Annual Income/Age 11

12 Tool & Die or English Major? A Million $ Decision
TOOL & DIE CUMULATIVE WEALTH ADVANTAGE Assumptions: 1. Zero wage inflation 2. Savings = 50% of difference in income 3. Investment return of 7% per year on savings AGE 12

13 Entrepreneurial Opportunities
BACKGROUND FOUNDED PURCHASED INHERITED UNSPECIFIED TOTAL OWNERS APPRENTICE GRADUATE % % % % % MACHINING TRAINING BUT NOT APPRENTICE % % % % % MANUFACTURING MANAGEMENT % % % % % BUSINESS MANAGEMENT BUT NOT MANUFACTURING 4% % % % % OTHER % % % % % TOTALS % % % % % % of Total % % % % % CONCLUSION: APPRENTICES & MACHINISTS FOUND COMPANIES SOURCE: NTMA/CHARMILLES OWNER/MANAGER SURVEY. SURVEY DATE: 2001

14 The Industry-Led Reshoring Initiative Provides
Online Library of 3,400 reshoring articles Statistics from TCO and Library databases Case Study template for posting cases Motivation for skilled manufacturing careers Free Total Cost of Ownership (TCO)* software for: Companies for sourcing Suppliers of parts and equipment for selling Institutions for training * NIST’s MEPs also offer a TCO system.

15 The Bleeding has Stopped
Manufacturing Jobs/Year Annual Average 2015 % Change New Offshoring ~240,000 ~60,000 -75% New Reshoring & FDI 12,000 67,000 + 400% Net Jobs Gained ~-220,000 ~0 N/A

16 Objective of Reshoring
Balance the $500 billion trade deficit: 4 million manufacturing jobs Cut U.S. budget deficit by about 50% Reduce unemployment about 4 percentage points Strengthen the middle-class 30% increase in manufacturing If spread over 20 years: 25% extra annual capital equipment investment Allow productivity and growth in mfg. employment

17 1/11/12 Insourcing Forum

18 Local Skilled Workforce Recruitment
Issue Solution “Trades” and “vocations” image Call them “Professions” “Middle skills” “Technical Skills” Manufacturing career image due to offshoring Industry collect and media report the local reshoring case of the month. Use our Case Studies feature.

19 Take Aways for Institutions
Improve recruitment by: “Professions” “Technical skills” Promoting local reshoring Promote reshoring to increase local manufacturing Promote the rate of MSSC credentialing as a metric of skills availability. Cooperate with EDOs Seeking groups to implement!


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